Need Help Choosing Mutual Company

[lifesales2009]

I have been an associate to a Financial Rep for the past two years and am ready to embark on being a FR myself. My only problem is choosing which Mutual company to go to. I currently work for NMFN which in my opinion, is the BEST mutual company due to the financial stability and dividend rate, etc. My only concern though is for a NEW agent, NMFN is rough on all the expenses they make you pay. I just interviewed with NY Life and they seem like a solid company that is lighter on the expenses they expect you to pay, and I have a meeting with Mass Mutual this week. My only concern is that since the market I want to deal with is the upper Middle Income class/affluent market, should I be too concerned with the recent downgrade of Mass Mutual and the negative outlook rating agencies have on both MM and NY Life. Does these updated negative reviews make NMFN ultimatley, the best company to be with, with financial stability and whole life products in mind? Need some advice from expereinced Life Reps who can get a sense of whether these ratings affect the prospecting of my ideal target market. I appreciate all the feedback.

 

[Dave020]

If it were me and I was going back to captive life insurance with your intended market (don't forget businesses as well), I would sign with NML again. No question.

 

[xrac]

I have been an associate to a Financial Rep for the past two years and am ready to embark on being a FR myself. My only problem is choosing which Mutual company to go to. I currently work for NMFN which in my opinion, is the BEST mutual company due to the financial stability and dividend rate, etc. My only concern though is for a NEW agent, NMFN is rough on all the expenses they make you pay. I just interviewed with NY Life and they seem like a solid company that is lighter on the expenses they expect you to pay, and I have a meeting with Mass Mutual this week. My only concern is that since the market I want to deal with is the upper Middle Income class/affluent market, should I be too concerned with the recent downgrade of Mass Mutual and the negative outlook rating agencies have on both MM and NY Life. Does these updated negative reviews make NMFN ultimatley, the best company to be with, with financial stability and whole life products in mind? Need some advice from expereinced Life Reps who can get a sense of whether these ratings affect the prospecting of my ideal target market. I appreciate all the feedback.

The information I had was that NWML was on the downgrade watch list. I wasn't aware that MM had any credit issues.

https://www.theinsuranceadvisor.com/?id=355

All things being equal I would go with MM and then maybe Guardian but I think how well the local office is ran and how well you will be trained and mentored is the overriding criteria.

 

[lifesales2009]

If it were me and I was going back to captive life insurance with your intended market (don't forget businesses as well), I would sign with NML again. No question.

Thanks for the feedback. But my only major concern is that NML expenses range from 1000-2500 for new reps. I dont have capital so I would be working against the tide so to speak. That's why I was thinking MassMutual was the next best thing, but not sure if prospects are too concerned with a company being on the watch list, as there are many of the industries companies already are. Hope that makes sense. But I agree with you 100% NML would be hands down my answer if the expenses werent involved.
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The information I had was that NWML was on the downgrade watch list. I wasn't aware that MM had any credit issues.



All things being equal I would go with MM and then maybe Guardian but I think how well the local office is ran and how well you will be trained and mentored is the overriding criteria.

As of june 2009 they are no longer on that list and have been affirmed stable outlook with highest possible ratings. Only company currently in the USA with highest ratings in every major rating agencies. But the only problem is that for new agents, high expenses can be very hard to deal with while trying to build a business and support a family. Thats why I was thinking of NY Life and MM as next best thing.

 

[Dave020]

Things must really have changed or the GAs/MPs is getting greedy.

We got free cube for 6-12 months
free parking
free computer use
TAP allowance on commissions to help offset expenses

The only thing we had to pay for back then was postage, fax and I think that was it. I heard they do charge an e-mail fee now (LOL).

The only knock might be if the expenses are crazy and there is no training allowance. I believe MM and NYL offer training allowances (likely based on production) which is kind of how TAP works with enhanced commissions.

Talk to the MP/GA and find out what they will do for you IN ADDITION to TAP to help you get started.

 

[Guest]

TAP allowance on commissions to help offset expenses

What is TAP?

Al

 

[lifesales2009]

What is TAP?

Al

TAP is temporary allowance program or something like that. Its enhances your FYC for newer agents. For instance, on a whole life product, the normal FYC is 55% but for 1st year agents with the TAP it is 82%.

 

[VolAgent]

Thought I posted this, but it disappeared.

Mass did not get downgraded. All four just reaffirmed their ratings for Mass, although three of the four have a negative outlook with the fourth being stable. I guess the GAs at NML are getting greedy, because when I interviewed there I got the impression the expenses were high. Also, a big producer left NML here to join Mass. The GA massively cut the agent's cut of outside group business.

And really, I would say Mass's products are just as strong or stronger than NML. NML just has a bigger reserve and surplus.

 

[lifesales2009]

Thought I posted this, but it disappeared.

Mass did not get downgraded. All four just reaffirmed their ratings for Mass, although three of the four have a negative outlook with the fourth being stable. I guess the GAs at NML are getting greedy, because when I interviewed there I got the impression the expenses were high. Also, a big producer left NML here to join Mass. The GA massively cut the agent's cut of outside group business.

And really, I would say Mass's products are just as strong or stronger than NML. NML just has a bigger reserve and surplus.

Well I was speaking of Moody's rating for MM. They are now in the second category of 21 tiers. They used to be in the first category, not sure if that matters much though. But I appreciate the feedback.

 

[LGilmore]

"They used to be in the first category, not sure if that matters much though."

A slight drop in ratings during this time period isn't a flashing red light for any of these carriers. They have all weathered worse and will survive this.

Besides 99.9% of the people out there buy the agent first. If you're a good agent, you could sell assbite life and folks would buy it.

Don't rely too much on ratings as they will change. Try to sell from the top couple of tiers and you should be fine.